Riches beyond reach: Average Australian needs over $300K to feel wealthy
The average Aussie says they'd need to earn a significant amount of money to feel rich, according to new research by Finder.
A Finder survey of 1,032 respondents revealed the average Australian wouldn't consider themselves affluent until they were earning $345,819 per year.
That's almost 5 times greater than the average personal income of $72,753, according to the Australian Bureau of Statistics.
Rebecca Pike, money expert at Finder, said longing for more cash can be a dangerous game.
"Remember only a small percentage of the population earns anywhere near $346K – the typical Aussie is on a salary closer to $70,000.
"That said, it's been an incredibly tough couple of years for many, with household budgets pushed to the limit.
"With everything from soaring property prices to expensive energy bills, the average person now feels they need to earn a whole lot more to be wealthy."
Millennials need the most money to feel rich ($418,325), followed by gen Z at $392,077.
Baby boomers think you need to earn the least amount to be wealthy ($273,812), compared to $307,257 for gen X.
The average Australian has $37,975 in savings and saves an extra $705 each month, according to data from Finder's Consumer Sentiment Tracker.
Pike encouraged Australians to get savvy with their finances.
"If you feel like your pay isn't stretching far enough, take stock of where your money is going.
"Cut spending on anything you aren't using or no longer need, and don't pay too much for what you do need.
"From energy to insurance to your mobile provider, compare your options to ensure you're getting the best bang for your buck. If you haven't switched any of these in the past 6–12 months, you're probably paying too much.
"Work on habits like setting aside a regular portion of your income straight into a high interest savings account and let it grow," Pike said.
| How much do you need to earn per year to be rich? | |
|---|---|
| Gen Z | $392,077 |
| Millennials | $418,325 |
| Gen X | $307,257 |
| Baby boomers | $273,812 |
| Average Australian | $345,819 |
| Source: Finder survey of 1,032 respondents, November 2023 |
Here's 50 easy and practical money-savings tips that will help you budget and save money quickly.